The British royal has spoken candidly in the past about starting a family with Kate but had not mentioned any specific number.
William's admission came during a visit to the Gardens by the Bay attraction in Singapore when the royal couple went on a walkabout, 'The Sun' reported.
"Someone asked him how many children he would like to have, and he said he was thinking about having two." said Corine Ackermann, 17, who was with school friends from the Tanglin Trust British School.
The Duke has mentioned a number of times his desire to start a family and it is not unusual for members of the public to quiz him about the topic.
The Duke and Duchess of Cambridge are on a nine-day tour of the Far East and South Pacific.
During a reception in April held for polar trekkers at Goldsmiths' Hall in London, William cooed over a young baby he held in his arms.
The royal couple also walked through the vast space of the factory at Rolls-Royce's Seletar campus.
Hundreds of Royal staff had gathered to cheer the Duke and Duchess who were celebrating the British success story of Rolls-Royce.
William jumped at the offer to test one of the multimillion-pound machines during a guided tour of the state-of-art plant in Singapore, saying: "Yes we will," in a loud voice when asked by staff.
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